With Trump pushing a national AI agenda and companies racing to expand their infrastructure, capital expenditure is surging again — and Nvidia is back in the spotlight. After a volatile stretch, the stock is rebounding. But is this just a relief rally, or the start of a renewed bull run?

What’s Driving the Rebound?

Policy tailwinds: Trump’s AI push is expected to unlock funding, accelerate federal adoption of AI, and incentivize private sector investments — all of which mean more demand for chips.

Capex surge: Major tech firms, cloud providers, and even startups are boosting spending on GPUs, data centers, and AI infrastructure. Nvidia remains a key beneficiary at the center of this ecosystem.

Resumed China sales: Loosening export concerns and resumption of shipments to China add another spark to Nvidia’s recovery.

Is It Sustainable?

While valuation remains rich, Nvidia's earnings growth and product leadership keep justifying the premium — at least for now. If the capex cycle continues and Trump’s AI strategy gains traction, Nvidia could stay on top as the arms dealer of the AI era.

However, short-term volatility remains. Rebounds can lose steam fast without follow-through from earnings or new demand signals.

Final Thought

Nvidia’s rebound isn’t just about charts — it’s about policy, capex, and dominance in a multi-trillion dollar AI race. If the AI narrative heats up again, this rally could have real legs.